How Doug Pitt helped Virgin Mobile redefine retention marketing

Agency: Havas WW Sydney and One Green Bean

Advertiser: Virgin Mobile Australia

Author: Phil Johnston

Total Campaign Expenditure: Under $500K

Strategic communications challenge

Virgin Mobile is a challenger brand in the Australian telecommunications (telco) market. It provides prepaid (ie no contract) and post-paid phone plans, in most cases accompanied by handsets.

The market is dominated by 3 big competitors, Telstra, Optus and Vodafone, who between them account for 82% of the market (Source: Roy Morgan). They dominate in terms of market share and customers and also enjoy a much more tangible presence due to their number of retail outlets and large communications spend. Virgin Mobile is consistently outspent by the major players, by a ratio of up to 4:1. (source: Nielsen Media Research)